Macy's, Inc. $M Shares Sold by Hennessy Advisors Inc.

Key Points

• Hennessy Advisors trimmed its Macy's stake by 5.3% in Q4, selling 130,700 shares and leaving it with 2,343,500 shares (about 0.88% of Macy's, worth ~$51.7M), making Macy's its fourth-largest holding at 1.8% of the fund.
• Insider sales included CEO Antony Spring selling 50,044 shares and EVP Tracy M. Preston selling 5,271 shares on April 6 to cover tax withholding from vested awards; insiders have sold 94,967 shares (~$1.71M) in the last 90 days and now own 1.05% of the company.
• Earnings beat and dividend increase: Macy's reported Q results above estimates (EPS $1.67 vs. $1.55, revenue $7.92B vs. $7.48B) despite revenue being down 1.7% YoY, and raised its quarterly dividend to $0.1915 (annualized $0.77) for a ~3.9% yield.

Hennessy Advisors Inc. lowered its holdings in Macy's, Inc. (NYSE:M - Free Report) by 5.3% in the 4th quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 2,343,500 shares of the company's stock after selling 130,700 shares during the period. Macy's makes up 1.8% of Hennessy Advisors Inc.'s portfolio, making the stock its 4th biggest position. Hennessy Advisors Inc. owned about 0.88% of Macy's worth $51,674,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds also recently modified their holdings of the stock. RWC Asset Management LLP boosted its position in shares of Macy's by 2.4% in the third quarter. RWC Asset Management LLP now owns 10,902,310 shares of the company's stock worth $195,478,000 after buying an additional 255,473 shares during the period. American Century Companies Inc. increased its position in shares of Macy's by 6.6% during the third quarter. American Century Companies Inc. now owns 10,764,293 shares of the company's stock worth $193,004,000 after acquiring an additional 669,729 shares during the last quarter. Schroder Investment Management Group increased its position in shares of Macy's by 1.1% during the third quarter. Schroder Investment Management Group now owns 9,738,338 shares of the company's stock worth $174,608,000 after acquiring an additional 110,548 shares during the last quarter. State Street Corp grew its position in shares of Macy's by 0.5% during the second quarter. State Street Corp now owns 9,420,372 shares of the company's stock worth $111,547,000 after buying an additional 45,997 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership grew its position in shares of Macy's by 39.9% during the third quarter. Arrowstreet Capital Limited Partnership now owns 5,950,950 shares of the company's stock worth $106,701,000 after buying an additional 1,697,412 shares in the last quarter. Hedge funds and other institutional investors own 87.36% of the company's stock.

Macy's Price Performance

Shares of Macy's stock opened at $19.53 on Monday. The company has a current ratio of 1.49, a quick ratio of 0.50 and a debt-to-equity ratio of 0.50. The stock has a market cap of $5.15 billion, a PE ratio of 8.42 and a beta of 1.51. Macy's, Inc. has a 52 week low of $10.54 and a 52 week high of $24.41. The company's 50-day moving average price is $19.19 and its two-hundred day moving average price is $20.27.

Macy's (NYSE:M - Get Free Report) last issued its quarterly earnings results on Wednesday, March 18th. The company reported $1.67 EPS for the quarter, beating the consensus estimate of $1.55 by $0.12. The business had revenue of $7.92 billion during the quarter, compared to the consensus estimate of $7.48 billion. Macy's had a net margin of 2.84% and a return on equity of 14.22%. The firm's quarterly revenue was down 1.7% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.80 EPS. As a group, sell-side analysts anticipate that Macy's, Inc. will post 2.39 EPS for the current fiscal year.

Macy's Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, April 1st. Investors of record on Friday, March 13th were given a dividend of $0.1915 per share. The ex-dividend date of this dividend was Friday, March 13th. This is a positive change from Macy's's previous quarterly dividend of $0.18. This represents a $0.77 dividend on an annualized basis and a yield of 3.9%. Macy's's payout ratio is 32.76%.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on M shares. JPMorgan Chase & Co. decreased their price target on shares of Macy's from $24.00 to $21.00 and set a "neutral" rating for the company in a research report on Wednesday, March 18th. Telsey Advisory Group reissued a "market perform" rating and set a $20.00 price target on shares of Macy's in a research report on Wednesday, April 1st. Jefferies Financial Group reissued a "buy" rating and set a $22.00 price target on shares of Macy's in a research report on Wednesday, March 18th. Wall Street Zen raised shares of Macy's from a "hold" rating to a "buy" rating in a research report on Saturday. Finally, TD Cowen reduced their price target on shares of Macy's from $21.00 to $20.00 and set a "hold" rating on the stock in a research report on Thursday, March 19th. One investment analyst has rated the stock with a Buy rating, eleven have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of "Reduce" and an average price target of $18.90.

Insider Transactions at Macy's

In related news, CEO Antony Spring sold 50,044 shares of Macy's stock in a transaction on Monday, April 6th. The stock was sold at an average price of $17.92, for a total transaction of $896,788.48. Following the completion of the sale, the chief executive officer owned 485,791 shares of the company's stock, valued at approximately $8,705,374.72. This trade represents a 9.34% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, EVP Tracy M. Preston sold 5,271 shares of the stock in a transaction on Monday, April 6th. The stock was sold at an average price of $17.92, for a total transaction of $94,456.32. Following the transaction, the executive vice president directly owned 28,773 shares in the company, valued at $515,612.16. The trade was a 15.48% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 94,967 shares of company stock worth $1,705,276 in the last ninety days. Company insiders own 1.05% of the company's stock.

Macy's Profile

Macy's, Inc is a leading American omnichannel retailer operating under the Macy's brand, as well as specialty divisions Bloomingdale's and Bluemercury. The company's retail portfolio encompasses full-line department stores, fashion-focused specialty outlets and a high-end beauty chain, offering consumers a wide array of apparel, footwear, accessories, cosmetics and home furnishings. Through its integrated network of physical stores and digital platforms, Macy's seeks to deliver a seamless shopping experience that blends in-store service with online convenience.

The company's product assortment spans men's, women's and children's clothing, beauty and personal care products, housewares and home décor.

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